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RETAIL CLASS OF AIM EQUITY FUNDS, INC.
AIM CAPITAL DEVELOPMENT FUND
Supplement dated August 30, 1996
to the Prospectus dated June 17, 1996
as supplemented June 27, 1996
The following paragraph is added as the ninth full paragraph under the
caption "INVESTMENT PROGRAM - Certain Investment Strategies and Policies" on
page 6:
Short Sales "Against the Box". The Fund may enter into short sales
transactions. The Fund will make short sales of securities only when the Fund
owns an equal amount of such securities or securities convertible into or
exchangeable for, without payment of any further consideration, securities of
the same issue as, and equal in amount to, the securities sold short. Such
short sales will be used for the purpose of deferring recognition of gain or
loss for federal income tax purposes. In no event may more than 10% of the
value of the Fund's net assets be deposited or pledged as collateral for such
sales at any time.
